Alaris Group’s customer-centricity pays off, says CFO Elsie Müller

The technology holding group has reported a HEPS increase of 50 percent.

Alaris Group has released its results for the year ended 30 June 2021, reporting a headline earnings per share (HEPS) increase of 50 percent from 25.89 cents to 38.78 cents.

“In a year where we have felt the effect of the pandemic for a full 12 months, we are proud that we could work together as a team and increase the HEPS for the year,” says CFO Elsie Müller.

Elsie explains that there were a lot of struggles Alaris had to overcome. “This year was definitely not easy and it required exceptional teamwork. For all the employees to work together, think out of the box and mitigate the risks is a great achievement and something to be proud of.”

The radio frequency technology holding group reported a revenue increase by 35 percent from R242.8 million to R328.3 million, which Elsie accredits to the group’s customer-centricity. “We try to see how best we can serve our customers and the sales teams always try their best to focus on solving the customers’ problems first and foremost. The sales process can take a long time and the contracts that we work on typically could take two to three years to kick off. The hard work put in a few years ago is therefore also showing in these results.”

She adds that it is important to remember that the companies of Alaris Group experience “lumpy” order intake. “In general, we do not have recurring contracts, therefore, we need to find new contracts every year and the sales team needs to work hard on getting the opportunities lined up.”

The Alaris Group is one of the few technology companies in South Africa that owns its IP and is not a reseller. “We therefore compete successfully in a first world environment with its unique, technologically advanced products,” Elsie says.

Most of the revenue Alaris earns is in hard currency (USD, GBP and EUR), and only seven percent is sold in South Africa. Of that, 75 percent is destined for export.

What has paid off, she says, was the strategic decision to establish Alaris USA. “Being customer-centric, we always want to be closest to the customers, and having a footprint in the US makes it easier for us to win more contracts.”

Elsie says that it is exactly this focus on being close to the customer that is driving further acquisitions in Europe and the USA. “Our new innovation funding initiative is an investment in fostering organic growth through research and development into new technologies and products in the subsidiaries.”

She explains that the completion of the Linwave acquisition is also a significant achievement of great strategic value for the group moving forwards. And the growth in the Alaris USA channel is exciting in terms of the promise it holds for the years to come.